As I have noted here, here and here, the S&P decline from its top at 1248 has recently been accompanied by divergent behavior in the daily number of issues which advance in price on the New York Stock Exchange.
I have updated this information in the charts above. Today the averages again made new reaction lows, but the daily number of advancing issues and both its 5 and its 10 day moving averages stayed above the lowest points seen during the drop from 1248. This indicates that the market has gradually been strengthening despite the drop in the averages during the past 10 days. This coupled with the fact that the S&P futures today bounced off of the 1/2 point of their short term box means that the short term trend has once again turned upward.
I think the market is now headed for 1268.
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